TOKYO, Dec 28 (Reuters) - Hitachi Ltd (6501.T) and partner
General Electric (GE.N) may struggle to hit a long-term orders
target for nuclear power plants due to signs of waning demand in
the United States, the president of Hitachi said.

Hiroaki Nakanishi also told Reuters in an interview that
Hitachi was in talks with Taiwan's Hon Hai Precision Industry Co
(2317.TW) about a tie-up in small liquid-crystal display panels,
confirming media reports of talks earlier this week.

Hitachi and GE joined forces in 2007 and set up joint
ventures in Japan and the United States, with the aim of tapping
growing demand for nuclear power. Hitachi owns 80 percent of the
Japan venture while GE has a 60 percent stake in the U.S. firm.

The partners have set a target of securing orders for at
least 38 nuclear plants by 2030. Of that, 10 were originally
expected to come from the United States, Nakanishi said.

"When we formed the joint venture, the situation was that we
expected a nuclear renaissance in America, with 30 new plants to
be built in the United States alone," said Nakanishi, who took
over the helm at Hitachi in April.

"That has changed enormously, with the discovery of shale gas
and big swings in fuel prices... We now don't expect any new
nuclear plants in the United States in the next 10 years."

The nuclear power business has been seen as potential growth
driver for Hitachi, a sprawling conglomerate of some 900 firms
that has been trying to narrow its focus and rejig its business
portfolio after losing money for four straight years.

Nakanishi said Hitachi was in talks with Hon Hai, one of the
biggest contract manufacturers for Apple's (AAPL.O) iPhone and
iPad, about an alliance with Hitachi Displays, a Hitachi
subsidiary that makes small and medium-sized LCD panels.

Japan's Nikkei newspaper said on Monday that Hon Hai would
buy a majority stake in the unit for about $1.2 billion.
[ID:nTOE6BP015]

"We are talking to them, that's true," Nakanishi said, when
asked about about the possibility of a tie-up.

"They are interested. We have no reason to refuse (to talk),"
he added, while declining to comment on whether the discussions
were aimed at selling Hitachi's 75 percent stake in the firm.

Hon Hai issued a statement in Taiwan on Tuesday, saying that
it could not comment on particular negotiations, but that if a
decision was made on any large investment, it would be announced
at an appropriate time.

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Nakanishi said the unit needed more independence from Hitachi
in order to make the large and timely investments needed to
compete in the increasingly commoditised LCD panel business.

"One way of doing that is an IPO. Another is a partnership
with another company," he said.

Shares in Hitachi closed up almost 1 percent at 415 yen on
Tuesday, before the interview was published, while the benchmark
Nikkei stock average .225 fell 0.6 percent.

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Keywords: HITACHI/INTERVIEW

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